Core Viewpoint - The next 12-18 months are critical for IREN Limited's performance, and the company should be valued as an AI infrastructure provider [1] Company Analysis - IREN Limited is positioned to leverage its capabilities in AI infrastructure, which may enhance its market valuation and performance in the upcoming period [1]

Core Viewpoint - Safran's CEO Olivier Andries indicated that while CFM will strive to meet any additional engine requests from Airbus, the primary focus remains on fulfilling existing supply commitments amid ongoing supply chain challenges with Pratt & Whitney [1]. Group 1: Company Commitments - CFM, co-owned by Safran and GE Aerospace, is committed to a 15% increase in total LEAP engine deliveries for the year, but this forecast does not account for an increase in market share [1]. - Safran has agreed on engine volumes with Airbus for 2026, emphasizing that any additional production will align with their market share commitments [1]. Group 2: Industry Context - Airbus is currently facing a stand-off with Pratt & Whitney regarding engine supplies, which jeopardizes its production goals and has led to a search for additional engines from CFM [1]. - Airbus aims to ramp up A320neo-family production to 75 units per month by 2027, up from approximately 60 currently, but has faced delays due to supply chain issues, particularly with Pratt & Whitney engines [1]. - Pratt & Whitney expressed confidence in reaching an agreement with Airbus, while Airbus has not commented ahead of its earnings announcement scheduled for February 19 [1].

Core Insights - IREN Limited will be added to the MSCI USA Index, effective after the close of trading on February 27, 2026, which is expected to enhance its visibility among institutional investors and index-tracking funds [1] - The MSCI USA Index measures the performance of large and mid-cap segments of the U.S. equity market, representing approximately 85% of the free float-adjusted market capitalization in the U.S. [1] Company Overview - IREN is a leading AI Cloud Service Provider, specializing in delivering large-scale GPU clusters for AI training and inference [2] - The company has built a vertically integrated platform supported by an extensive portfolio of grid-connected land and data centers located in renewable-rich regions across the U.S. and Canada [2] Management Commentary - Daniel Roberts, Co-Founder and Co-CEO of IREN, stated that the inclusion in the MSCI USA Index reflects the scale and liquidity achieved by the company, which is expected to broaden institutional access as IREN continues to execute its AI Cloud strategy [2]

Core Viewpoint - Iren is considered undervalued, with potential for significant long-term gains despite recent volatility in stock price [1][2] Financial Performance - Iren's stock price fluctuated significantly, closing at just under $40 and dropping below $30 in after-hours trading, but rebounded to end the day up by 5% [1] - The current market cap of Iren is approximately $14 billion, with a gross margin of 28.21% [4] Business Developments - Iren did not announce a new customer deal, which disappointed investors, but the CEO indicated ongoing negotiations for multiple contracts, including a multibillion-dollar deal [3][5] - The company has secured a new 1.6 gigawatt data center campus in Oklahoma, increasing its total secured, grid-connected power to 4.5 gigawatts [7] Market Position and Potential - Iren's capacity to support large deals is bolstered by its 1.4 gigawatt Sweetwater 1 facility, expected to be energized in April [6] - The company has the potential to generate over $40 billion in annual recurring revenue if it can replicate its previous success with Microsoft across its 4.5 gigawatts of secured power [8] - Iren's projected annual recurring revenue is expected to reach $3.4 billion by the end of 2026, indicating significant growth potential relative to its current market cap [9]

Core Viewpoint - Iren Limited is transitioning from Bitcoin mining to AI compute, with a significant decline in revenue due to lower Bitcoin prices and operating hash rate, but presents a buying opportunity following a price target reduction by Cantor Fitzgerald [1][2][3]. Financial Performance - In FQ2 2026, Iren Limited reported revenue of $184.7 million, a 23% decrease from the previous quarter, primarily due to lower Bitcoin mining revenue and a reduction in operating hash rate [2]. - The decline in revenue was partially offset by growth in AI cloud revenue, attributed to the commissioning of new GPUs at the Prince George site [2]. Strategic Direction - The company is strategically pivoting towards AI compute, targeting an annualized revenue run rate (ARR) of $3.4 billion by the end of 2026 [3]. - Currently, Iren has approximately $2.3 billion in ARR under contract, including a significant $9.7 billion AI agreement with Microsoft, expected to ramp up progressively throughout the year [3]. - To support this growth, Iren has expanded its secured power capacity to over 4.5 gigawatts, including a new 1.6 gigawatt site in Oklahoma [3]. Business Operations - Iren Limited operates in the vertically integrated data center business in Australia and Canada, owning and operating computing hardware, electrical infrastructure, and data centers [4].

Core Insights - IREN Limited (IREN) aims to achieve $3.4 billion in annualized run-rate revenues (ARR) by the end of 2026, primarily driven by its AI cloud business [1][10] Financial Performance - In Q2 of fiscal 2026, IREN reported approximately $2.3 billion of ARR under contract, including a significant agreement with Microsoft and $0.4-$0.5 billion from the Prince George site [1][10] - IREN secured $3.6 billion in GPU financing and received $1.9 billion in customer prepayments from Microsoft, covering about 95% of the GPU-related capital spending associated with the Microsoft contract [2] - The Zacks Consensus Estimate for IREN's fiscal 2026 revenues is $1.01 billion, indicating a year-over-year increase of 98.6%, while the estimate for fiscal 2027 revenues is $2.76 billion, reflecting a year-over-year increase of 172.6% [4] Power and Infrastructure - IREN has secured over 4.5 gigawatts (GW) of power, which is crucial in the current data center market, and only about 10% of this power will be used to reach the $3.4 billion ARR target by the end of 2026 [3] - The company plans to deploy around 140,000 GPUs by the end of 2026, supported by its available power capacity [3] Competitive Landscape - IREN faces significant competition from Applied Digital (APLD) and TeraWulf (WULF) in the AI infrastructure sector [5] - Applied Digital is constructing Delta Forge 1, an AI data center campus with an initial capacity of 430 megawatts (MW) [6] - TeraWulf has expanded its portfolio by acquiring two sites, adding approximately 1.5 GW of power capacity, increasing its total to about 2.8 GW [7] Stock Performance - IREN's shares have increased by 142.5% over the past six months, outperforming the Zacks Financial Miscellaneous Services industry's decline of 23.4% [8]

Group 1 - The stock price of IREN is under pressure this month due to a retreat in Bitcoin prices and a decline in Neoclouds shares [1] - IREN's stock price has retreated to $42.93 on Wednesday, marking a 44% decrease from its highest level in November of the previous year [1]

Core Insights - The article emphasizes the importance of investing in AI infrastructure companies, referred to as "pick-and-shovel plays," which are expected to benefit from the rapid growth of artificial intelligence and high-performance computing [1] Group 1: AI Infrastructure Companies - Companies like Nebius Group (NBIS), IREN (IREN), Astera Labs (ALAB), TeraWulf (WULF), and Cipher Mining (CIFR) are positioned to profit regardless of which AI model prevails, offering stable revenues and broad industry exposure [1] - Nebius Group is projected to experience a remarkable revenue growth of 5x by 2026, indicating strong market potential [7] Group 2: AI Capital Expenditure Trends - Hyperscaler capital expenditure (CAPEX) is forecasted to increase from $390 billion in 2025 to $515 billion in 2026, reflecting a significant rise in AI-related spending [2][3] - AI spending now constitutes over 2% of GDP, surpassing historical investments in railroads during the 1850s, highlighting the critical role of AI in the economy [2] Group 3: Productivity and Market Dynamics - The proliferation of AI technology has led to a 30% increase in coding productivity, countering skepticism regarding the return on investment in AI [9][11] - Companies are transitioning from capital-intensive models to high-margin operations, as seen with IREN's shift to a GPU-as-a-Service model, resulting in gross profits rising from under $200 million to $600 million [12] Group 4: Market Sentiment and Technical Analysis - A bullish shakeout pattern has been observed in stocks like NBIS, where prices briefly fell below key support levels before rebounding, indicating potential for future price increases [13] - The current market environment presents a unique opportunity for investors to focus on AI infrastructure providers, minimizing the uncertainty associated with software competition in the AI sector [15]

Core Insights - IREN Limited's shares increased by 5.1% following the release of its second-quarter fiscal 2026 results, driven by significant growth in its AI Cloud Business, which saw a sequential increase of 136.9% to $17.3 million from $7.3 million in the previous quarter [1][9]. Business Transition and Market Opportunity - IREN is transitioning from a pure-play crypto-mining company to an AI Cloud Service Provider, positioning itself to benefit from the rapidly growing AI compute infrastructure market, which is projected to grow at a CAGR of 23.8% [2]. - The company aims to achieve $3.4 billion in annualized run-rate revenues (ARR) by the end of calendar 2026, with $2.3 billion of ARR already under contract, including a significant agreement with Microsoft [3]. Financial Backing and Growth Capacity - In the second quarter of fiscal 2026, IREN secured $3.6 billion in GPU financing and received $1.9 billion in customer prepayments from Microsoft, covering approximately 95% of GPU-related capital expenditures associated with the Microsoft contract [4]. - IREN has secured over 4.5 gigawatts (GW) of power, with only about 10% needed to reach its $3.4 billion ARR target, leaving substantial capacity for future growth [5]. - The company expanded its power capacity by securing a 1.6-gigawatt site in Oklahoma, enhancing its U.S. footprint and supporting long-term expansion plans [6]. Revenue Estimates and Growth Projections - The Zacks Consensus Estimate for IREN's fiscal 2026 revenues is $1.08 billion, reflecting a year-over-year increase of 112.8%, while the estimate for fiscal 2027 revenues is $2.78 billion, indicating a year-over-year increase of 156.2% [7]. Competitive Landscape - IREN faces significant competition in the AI infrastructure space from established players like Applied Digital and TeraWulf, which may impact its market position [10]. - Recent developments from competitors include Applied Digital's construction of a large AI data center and TeraWulf's acquisition of sites to expand its power capacity [11][12]. Stock Performance and Valuation - IREN's shares have declined by 30.5% over the past three months, underperforming the industry average decline of 17.3% and lagging behind peers like Applied Digital and TeraWulf [13]. - The company's shares are currently considered overvalued, trading at a forward price/sales ratio of 5.6X compared to the industry average of 3.02X [17]. Conclusion - IREN's strategic shift towards AI cloud services is yielding positive early results, supported by strong contracts and funding. However, the high level of competition and premium valuation suggest a cautious approach to investment in the stock [20].

Market Overview - There are signs of cracks forming in the market, impacting it negatively despite some exaggerated individual stock movements [1] - The current volatility is prompting a mix of short-term trading strategies and long-term stock purchases [2] Stock Analysis - Nvidia is highlighted as a strong buy at the 200-day simple moving average, with a historical tendency to rally around 10% in the 21 days leading up to earnings [3] - A price target of 225 is set for Nvidia, with resistance noted at 185 [4] - Broadcom is also performing well, bouncing off the 200-day moving average, indicating a strong position in the market [5] - A short-term position on Broadcom is targeted at 350, with a potential breakout leading to a target of 400 [6] Volatility and Long-term Perspective - Some stocks, like Iron, are experiencing volatility but are viewed positively for long-term investment due to favorable chart patterns [7][8] - The long-term outlook for certain stocks is emphasized, suggesting that current volatility will be forgotten in the future [10] Specific Stock Recommendations - Roblox is viewed as a short opportunity due to a downtrend and resistance levels, while Amazon is considered a long-term buy, having held the $200 price point well [11] - Salesforce is noted for its consistent decline in earnings reports, with a recommendation to short on rallies [12][13] - Dell is also mentioned as a short position before earnings, reflecting a cautious approach to its performance [14]